Question

Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from the Fourth National Bank to pay for it. When their first payment is due, however, they get a letter from Bank of North America stating that they bought the loan from Fourth National Bank. Which of the following is true?
A. Fourth National Bank made a delegation.
B. Bank of North America became an incidental third party beneficiary.
C. Fourth National Bank made an assignment.
D. Bank of North America became an intended third party beneficiary.

Answer 1

Answer:

The best answer would be C. Fourth National Bank made an assignment.

Explanation:

The Fourth National Bank made an allocation of the loan as it was belonging to the Bank of North America stating that they got a loan.